The federal government refused to provide Khyber Pakhtunkhwa with additional funds to cover salary increments of government employees.
Sources said the federal government is reluctant to pay the extra funds needed, making provincial governments see salary increments as burdensome.
Sources also said the budgetary announcement of a 50 per cent pay raise translates into an additional Rs12 billion.
Under the circumstances, Khyber Pakhtunkhwa's government has reserved its decision on pay increments till the issue is discussed in a joint parliamentary and cabinet session.
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